Filing Taxes – Frequently Asked Questions
Everyone has questions about filing taxes. As a trusted part of the community, we’re here to help answer your questions and help with filing your taxes. Check out some commonly asked questions below.
Don’t see what you’re looking for? Contact us or give us a call at (614) 938-3800. Our expert team will help you find the answers you need.
Filing Taxes and Tax Credit FAQ
- If your family had income from working in 2022, there is a good chance you might get money back in the form of tax credit refunds like the Earned Income Tax Credit (EITC).
- If you owe the government money, filing can protect you from owing an even larger sum later.
- If you choose to work with us to file your taxes, we will prepare your taxes and go over them with you before filing. We won’t file unless you give us the final okay.
A 1099 form shows income you might have earned from a source other than traditional employment.
- You receive a 1099-NEC or a 1099 -MISC if you have income from contract or “gig” work. This includes work with contractors like Uber, Lyft, InstaCart or Grubhub.
- This type of document is also common for workers who act as independent contractors such as housekeepers, some home health care workers, and musicians. You will usually have to pay taxes on this income.
- Sometimes, filers are surprised to find that they owe money at tax time when they have 1099 income. This happens because the tax rate on this income is higher and because there is usually not any money withheld (Box 4 on your 1099) to cover any taxes you might owe.
- If the provider of this income allows you to withhold money to pay federal taxes, you should take advantage of this and have some money withheld.
- If withholding is not an option, you can set some of the money aside in case you need it to pay tax owed.
- You can set up a personal account with the IRS and make quarterly payments in advance to cover any tax you might owe.
- Make sure to keep track of all of your driving mileage and other expenses. These things can be used to reduce your overall income and can help reduce the amount of tax owed.
Congress expanded Child Tax Credits for 2021 as part of the American Rescue Plan. This included monthly payments made directly to parents and caregivers from July through December. The IRS started sending monthly advance payments to eligible families starting July 15, 2021.
- For qualifying households, the full payment amount is $300 per month for each child 0 to 5 years old and $250 per month for each child 6 to 17 years old.
- This credit pays out half of the tax credit now, and you’ll receive the other half when you file your 2021 taxes.
For more information on the advance child tax credit payments, please visit this Nationwide Children’s Hospital tax credit blog post.
No, you did not miss out. When you file your taxes, you will receive the full amount of the Child Tax Credit for which you are eligible. If you did not get the monthly advance payments, the amount you did not receive will be added to your credits.
What if I did not file last year and missed getting the expanded Child Tax Credit?
You can still claim the expanded Child Tax Credit if you file your 2021 taxes this filing season. Our team can help you file previous years’ returns for 2020 and 2021 so you can get all of the credits you have earned.
Are there still Child Tax Credits for my 2022 taxes?
Yes, there are. The rules for the Child Tax Credit go back to the “old” rules, but the credit can still help families pay any tax they owe and add to their refund.
- For qualifying families, the maximum credit for children 16 years old and younger is $2,000.
- If you have income from working, you might be able to claim as much as $1,400 of that as part of your refund.
Our team can help you figure out what the amount of your CTC will be.
The Earned Income Tax Credit (EITC) is a work credit that may give you money back at tax time or help you pay some of the federal taxes you owe. You can claim the credit whether you’re single or married or have children or don’t have children. The main requirement is that you must earn money from a job. If the EITC amount is more than what you owe in taxes, the government will give you the extra money back in your tax refund. If you qualify for the credit, you can still receive a refund even if you do not owe income tax.
You can access the EITC estimator here. This tool explains EITC in further detail and provides estimates.
- You will need an ITIN (Individual Tax Identification Number). If you don’t have one, we can help you with that.
- If you are thinking about applying for citizenship or residency, filing shows an effort to follow the law.
- The IRS does not share your information with ICE (Immigration and Customs Enforcement).
- They can show you credits you qualify for
- The amount of any refunds coming your way
- If you owe, how much you owe
- Make sure all fees and charges are given to you in writing up front.
- Make sure there is not an extra fee for filing your state taxes.
- Watch out for services that require you to deposit your refund money in their company bank account. Genuinely free services will always deposit funds directly in your account or make sure a check is sent directly to your home address.
These services don’t actually file your taxes early. They use basic information about your income and filing status to give you an advance or a loan based on the projected amount of your refund. Your taxes won’t be filed until February when the IRS filing portal opens. Also, because the payment you get with these services is really a loan, there is usually a fee or interest that you have to pay to get that money. Sometimes those fees can be as high as $500 or $600. If you can wait a few weeks, services like ours can help you receive your refund completely free. No fees. No interest. Just your full refund deposited directly to your bank account or mailed directly to your home.
Health insurance purchased in the Health Insurance Marketplace under the Affordable Care Act (ACA also often called “Obamacare”) can impact your tax filing. You might have received premium credits that helped reduce the monthly cost of your coverage. Those credits are actually advanced payments of tax credits. The amount of those credits is based on the income you report when you enroll in coverage.
If your income changed during the year, this could change the amount of credit for which you are eligible. When you enter your information to prepare your taxes, it will automatically reconcile the premium credits you received with the actual credits for which you were eligible.
- If your income was higher than you estimated at enrollment:
- You will probably have to pay back some of the advance credits you were awarded.
- If you are eligible for a tax refund, the amount you have to pay back will be taken from your refund.
- If you are not eligible for a refund, the amount you have to pay back will be considered an owed tax payment.
- If your income was lower than you estimated at enrollment:
- You might be eligible for additional credits to help pay your premiums.
- If you are eligible for a larger credit that you were awarded, that amount will be added to any tax refund for which you are eligible or could be used to reduce any amount of tax you owe.
Prior to filing your tax return, you should receive an IRS Form 1095-A Health Insurance Marketplace Statement. You should also be able to view this form in your Health Insurance Marketplace Account. This form will show your monthly premiums and the monthly credits you were advanced to help pay your costs.
Avoid having your insurance coverage impact your tax return by reporting any changes in income through your Health Insurance Marketplace Account.
If you’re still unsure how this impacts your taxes, bring your 1095-A form to your filing appointment and our team can answer your questions.
Free Tax Help FAQ
Nationwide Children’s Hospital is offering free tax prep at three Primary Care Centers and two community partner locations. Look at our Locations page for details about days, hours and the types of services offered at each clinic.
You can schedule online and receive reminder notices. This will be the quickest, most efficient way to make an appointment.
If you aren’t sure about scheduling online, you can still message or call us. Our outreach specialist will help you schedule an appointment that works best for you and your family.
Information regarding services in Licking, Morgan, Muskingum and Perry counties is available below.
If you do not live in these counties but need assistance, please call United Way at 2-1-1.
- Licking County: Licking County Coalition for Housing provides free tax preparation through the IRS-sponsored Volunteer Income Tax Assistance (VITA) program. Families with an income of less than $60,000 are eligible. Appointments are required. Call (740) 345-1970 ext. 200 to schedule. Visit www.lcchousing.org or Facebook.com/LCCHousing for more info.
- Morgan, Muskingum and Perry Counties: United Way of Muskingum, Perry, and Morgan Counites provides free federal and state tax preparation to low-income community members ($38,000 or below for single filers, $50,000 or below for filers who are married or with dependents.) Call 2-1-1 to schedule an appointment or visit www.unitedwayofmpm.org for more info.